Collars vs Bull Spreads

Are collar and bull spread have the same effect of floor and ceiling, and are there profit diagram the same?

Nope not even close

different diagrams

I don’t see them to be comparable

They would be a little similar since in both instances you’re selling a call at a strike above the stock you own, and both limit the downside risk. In the collar you buy a put below the stock you own.

but If the stock crashes the collar pays off and the spread won’t which probably looks very different on a graph

You people!

Collar: _/¯

Bull Spread: _/¯

They’re equivalent. They’re built differently, but they’re equivalent.

Sheesh!

Yeah it makes sense actually. You’re protecting your long stock should the put come in the money and the spread doesn’t intrinsically mean you own the stock.

Lol, they may have the same graph but the collar is a dull play whereas the bull spread is great to hit big bucks for some fun speculation, especially intraday bet !

Thanks for getting my question :smiley:

Since they have the same diagram in the end, what can be the different outcomes from both techniques?

You are simply awsome!